A parliamentary battle for control over Spain’s rental market is entering a new phase. A legislative initiative aimed at cracking down on short-term contract abuses has received preliminary approval from a key committee of the Congress. The Socialists (PSOE) and the Basque Nationalist Party (PNV) have decided to support the proposal, which was originally put forward by the Sumar coalition and other left-wing groups, including ERC and Bildu.
The core of the proposed changes is a reform of the current Urban Lease Law (LAU). The main goal is to close a loophole that allows landlords to bypass strict long-term lease rules by disguising them as “seasonal” contracts. This is especially relevant in so-called “high-pressure” areas, where authorities are trying to contain the sharp rise in housing prices. Going forward, property owners will be required to prove the genuine necessity for offering short-term rentals, with justification requirements similar to those imposed by labor laws.
The bill sets clear time limits. A ‘seasonal’ contract cannot exceed nine months, which roughly corresponds to the length of an academic or fiscal year. If this period is surpassed, or if several such agreements are made consecutively with the same tenant, the rental will automatically be considered a standard long-term lease. In this case, all the protective mechanisms provided for permanent housing will apply, including minimum residence periods and the right to automatic renewal.
Despite success in a closed-door committee hearing, where the bill was given the green light, the path to its passage remains challenging. The Partido Popular (PP) and Vox opposed it. Next, the debate will move to a public session of the Housing Committee, but the decisive vote will take place on the floor of Congress. And here, the numbers are currently not in favor of the reform’s supporters.
Representatives of the Socialists call the agreement the result of joint efforts with the Ministry of Housing and tenants’ unions, stressing its importance in protecting thousands of renters across the country. However, all eyes are now on the Catalan party Junts. Without their votes, the initiative stands no chance of becoming law, and the fate of thousands of tenants across Spain remains uncertain.
